Posts by Ross Hardy

Top 10 Condo Building Problems

Workmanship, Quality Control & Water…

Probably because I have inspected thousands of condo buildings and their units for construction defects and other issues, I am often asked by both prospective condo buyers and property managers to name the most common problems found in new condo developments. Interesting enough, new condo buildings have more hidden problems than older facilities whose defects have manifested themselves over time. Therefore, my first response to a buyer is to hire a professional building inspector before purchase. To a board or property manager, I recommend engaging an engineer to conduct a transition study prior to facility acceptance.

When & Why

A building inspection is like an auditor looking over the books. If no early problems are discovered, the process goes more smoothly. When issues appear early, though, it is a strong indication that a more in-depth investigation is needed. Another maxim: problems are rarely found in the materials and equipment; rather, defects are primarily due to workmanship quality control and water in all its forms.

  1. Grading/Drainage
    New grading is prone to experience settlement. This often manifests itself in sunken storm drain grates; uneven paved surfaces; cracked sidewalks; driveway surface depressions allowing ponded water; drip-edge ground sloping toward the foundations; etc. Sometimes these problems can only be observed during rain events, but they can also be indirectly discovered from visible soil erosion and dried water strains.
  2. Building Envelope
    The building envelope includes exterior siding materials, doors, windows, and roof surface.  As mentioned earlier, water or air infiltration problems are not due to defects in materials but rather improper flashing, poor use of fasteners, and not following manufacturer’s installation recommendations. A review of the manufacturer’s specifications can be the most productive inspection technique.
  3. Foundation Cracks
    Most foundations use concrete, and concrete shrinks as it cures. Steel or fiber reinforcement is used to control and minimize cracking during the curing process. For this reason, most cracks in concrete are not a sign of structural problems or foundation settlement. Most building engineers can quickly determine the significance of observed cracking. Often water infiltration through the cracks is a greater issue.
  4. Wood Flooring
    Floorboards separating or buckling is a commonly reported problem in newly installed solid wood floors. Assuming the floor has not experienced a recent flooding event, movement of solid wood floors is often due to the installer not allowing the floor to acclimate to the interior’s humidity level. Floor wood typically has a moisture content of 6 to 8% moisture content in New England homes. If the floor material is not stored for a few days in the home’s environment prior to being installed, floor movement can result.
  5. Plumbing
    Always turn on the faucets and look under the sink. It’ surprising how many water leaks can be found with just this simple exercise. One of the most common problems discovered is the improper reversal of the hot- and cold-water piping.
  6. Ventilation Ducts
    Ductwork is not always sealed during construction, resulting in dust and debris from operations settling in the ducts. Ducts full of dust and debris should be cleaned by a professional.
  7. Paint
    Though full paint coverage may be called for in the specifications, sometimes tightened schedules and poor supervision allow areas such as basement area, closet ceilings, and other less visible spaces to be overlooked. Paint surfaces should always be inspected with a strong light applied at an angle. Painting irregularities, called “holidays,” can often only be seen using this method.
  8. HVAC Systems
    Modern systems require final reviews to determine if they are operating within their design parameters. This may include a review of the balancing report, use of anemometers to measure air flow, and temperature readings at floor and wall registers. Room temperature controls can be adversely affected when placed where direct sunlight can reach them.
  9. Unauthorized Substitutions
    A review of the project specifications can reveal inferior material or equipment has been substituted. This is typically done to save the developer money. Whether the substitution is equal or better than first specified is often a subjective matter, but still should be judged to be acceptable by the intended user.
  10. Incomplete work
    This issue can take on many forms, but the most important is life safety issues. This includes adequate fire sprinklers, fire-stopping seals around pipes and conduit, and code required fire separation. Fire alarms and CO2 detectors should be tested.

 

Article written by Jack Carr, P.E., R.S., LEED-APCriterium Engineers
Published in Condo Media October 2020 edition
Download a PDF Version of this Condo Media Article

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Section 1031 Exchanges & Cost Segregation

1031 exchanges cost segregation

Real estate investors have known for years that 1031 property exchanges can save taxes. A cost segregation study is something else investors should consider at the same time—as both may save taxes and improve cash flow. Here’s how a cost segregation study may benefit your next transaction.

Whereas cost segregation studies are often conducted at the time of purchase; 1031 property exchanges are arranged at the time of sale of the investment property. The goal of the 1031 tax savings device is to postpone the recognition of capital gains on the relinquished property by shifting the tax consequences to the books of the new property purchased and thus deferring the tax payment into the future.

The goal of a cost segregation study is to accelerate depreciation expenses into earlier years of a real estate investment’s lifetime. This action allows these accelerated deductions to increase allowable expenses in the early years of the investment deferring tax payments into the future. This will produce increased cash flow while benefiting from the time value of money to an estimate 5% to 10% of the building’s cost basis.

This proven tax strategy is accomplished by segregating personal property (Section 1245 assets) out of long-term depreciation categories such as commercial buildings (39 years or apartments – 27½ years) and reclassifying these assets to shorter depreciation categories including 5, 7, and 15 year. The additional side benefit is the values of each of the study’s components, including Section 1250 assets such roof, HVAC, and building façade components can later be used to claim an early retirement loss or partial disposition for any remaining depreciation basis left when the asset is replaced.

1031 Exchanges & Cost Segregation – who to contact

Talk to your tax specialist about 1031 property exchanges and partner with Criterium Engineers’ experienced team of cost segregation engineers. Together, we can work to maximize your real estate transaction.

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Common Asset Maintenance: Best Practices

HOA Maintenance Plans

As a young engineer, the most valuable lesson I learned early on was not to try to remember everything but know where to find the answers. It is no different for a new condo board or property manager. The Community Association Institute (CAI) has gone to great lengths to provide community leaders with a wide range of resources needed to operate a successful condominium or HOA complex. When it comes to the critical task of maintaining the common assets of the community the first step should be downloading and reviewing CAI’s “Best Practices: Community Association Maintenance” off the web site at https://Foundation.caionline.org/publications/best-practices-reports.org

All condos great or small; tall or long; simple or complex need a Maintenance Plan. No exceptions. The principal fiduciary duty of all condominium leaders is to Maintain, Protect, and Enhance. The only way to successfully implement such a plan is to create a Maintenance Program to implement the Plan in an efficient and cost-effective manner. A well written program will help to define the roles and responsibilities of both the association and homeowner as well as assure a connection between the Maintenance Plan and the recommendation of the most current reserve fund study. There is no need to start from scratch or re-invent the wheel. It is all spelled out in the aforementioned best practices report containing recommendations on developing plans, programs, and checklists.

It is not surprising some established condominiums do not have a Maintenance Plan. When developers turn over a condo complex to a new board often only drawings, specifications, and equipment manuals are provided, but no plan. A manual of how to tie all this data together is nowhere to be seen. A Maintenance Plan is so vital to a community’s future success some states (California, Minnesota, Oregon) require it by law. But the most important reason is to save money. These savings come from the community’s future financial stability; reduction in board turnover; higher property values; reduction in risk leading to lower insurance costs; and reduced reserve fund needs.

Simple Vs. Complex

Like people, all condominiums and HOAs are unique but they fall into two categories, Simple and Complex. Simple condos have inventories of common assets of primarily building envelopes and exterior infrastructure like roadways and landscaping found in the CC&R’s (covenants, conditions & restrictions) and site plans. The assets come with maintenance manuals and warranties. Other sources of asset information come from property managers, maintenance contractors, and reserve study engineers. Management tools can be limited to spreadsheets and bookkeeping software.

Complex condos on the other hand typically include mid and high-rise structures often with master associations rather than horizontal and low-rise multi-plex units. Complex condos share common systems such as mechanical, electrical, plumbing, and elevators. They have more extensive systems for security; communication; life safety; recreational facilities; and other amenities. As these communities have larger budgets with more systems to monitor, they need both preventative and corrective maintenance programs.

Preventative maintenance can include predictive maintenance using technical data analysis from sensors or field data to monitor for warning signs and prescription maintenance to establish estimated schedules to anticipate failure dates of component failures to compliment season maintenance schedules for periodic repetitive repairs and servicing. These complex condos have a more comprehensive schedule of inspections, photo inventory, and infrastructure reviews.

Also monitored is the community’s corrective maintenance history of component repairs due to premature failure such as buckling sidewalks; roof leaks; and mechanical failures. Similarly recorded are items falling into the deferred maintenance category as these are the most likely candidates causing premature failures, safety problems, and avoidable expensive repairs.

The catastrophic failure of the Florida high rise building in Surfside has added a new dimension to maintenance and reserve fund planning. In the past, long term inspections were limited to 30-year structural studies and occasional infrastructure reviews. Now most condo maintenance professionals recommend much shorter inspection intervals for both non-structural and structural common components. Non-structural include fire and life safety as well as MEP (mechanical, electrical, plumbing) systems.

Structural components include both primary load bearing building elements and assets not directly supporting the building such as awnings and decks. Benchmarks to help in defining the scope of structural inspections can be found in the American Society of Civil Engineers (ASCE) publications: “Guidelines for Structural Condition Assessment of Existing Buildings” and “Guidelines for Condition Assessment of the Building Envelope”.

So where to start? As with any task it starts with leadership. The board needs to find and support a committee chair to form a team of volunteers dedicated to developing a Maintenance Plan and subsequent program of implementation. This often requires the board to establish a Charter defining the committee’s scope and responsibilities while creating the culture of the importance of planning ahead. As JFK said many years ago, “The time to repair the roof is when the sun is shining.”

Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers
Published in Condo Media

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Out of Pocket: How to Sell the Results of a Reserve Study Without a Revolt

Reserve without revolt

You are a board president and you just found out that your association needs $200,000 to replace the clubhouse HVAC system. Your operating budget has no contingency funds and your reserve fund (which only gets occasional contributions) only has a balance of $50,000. What do you do now? No one wants to be in such a situation, but without a good, independent reserve fund study, you are at risk.

While the importance of associations building and maintaining a strong Reserve fund is no mystery, raising fees or special assessments is often a sensitive subject with homeowners. Every association needs a long-term planning tool, and a reserve fund study provides a schedule and budget for funding those non-annual, predictable expenses.

FIDUCIARY RESPONSIBILITY

One of the primary business duties of community associations is maintaining and preserving property values of the associations’ common property. To do this properly, associations must develop funding plans for future repair or replacement of major common-area components.

A reserve study is a budget planning tool that identifies the current status of the reserve fund and establishes a stable and equitable funding plan to offset the anticipated future major common-area expenditures. Being prepared for non-annual expenses allows your association to change the unexpected to the expected.

Reserve fund studies are one of the best tools for financial and physical health available to an association. Having a reserve fund study prepared by an independent, qualified consultant also demonstrates a good faith effort by the board to respond to their fiduciary responsibility.

For accuracy and credibility (and defendability), a reserve fund study should be updated (with a site visit) every three or four years. Each state has different requirements regarding the frequency of full studies and updates.

COMMUNICATION AND RELATIONSHIPS

Reserve fund Studies may discover that additional funds are needed to offset projected future expense. That’s when the board’s ability to deliver that information effectively can be challenging

It is our belief that fundamental to meeting that challenge is two basic premises: communication and relationships. Communication is multi-faceted – between the board and the owners, between the board (and/or subcommittee) and the consultant, and between the consultant and the owners. To ignore these opportunities for effective communication will result in diluting the effectiveness and ultimate success of the implementation of any reserve fund study for your association.

Relationship nurtures trust and confidence. Through effective communication, greater trust and confidence can be developed between the various parties involved. As a result, it is more likely (although certainly not guaranteed) that the recommendations of a reserve fund study can be effectively implemented.

The Board should maintain open communications with the association members. With Zoom meetings and the internet, ongoing communication is easier than ever. And CAI provide good information about the purpose and best practices for a reserve fund study. Helping owners understand a reserve fund is important.

AN OUTLINE FOR SUCCESS

It is imperative that the scope of a reserve study be clearly defined before even seeking proposals from consultants. The following are a variety of options to be included in the scope of any request for proposals:

Define the project

Define exactly what is expected of the consultant. This should be as a result of discussion by the board and/or building subcommittee to determine what is needed. It is particularly important to decide whether the reserve study is to be based on simply replacing existing components or if upgrades and improvements should be considered. As our buildings and owners age, priorities from the common areas may change.

Interview the consultant

Getting to know the consultant, the people involved on your project and their approach to the project is imperative to a successful relationship. The RFP should include a paragraph such as follows below.

The board will select two to three consultants it believes to be qualified for the work and then conduct interviews, either in person, by video conferencing or by conference call. The objective of the interview is to meet the people who will be specifically working on our project, discuss a variety of questions, and generally understand the procedures the consultant intends to use for the project. A final choice will be made within one week following the interviews.

A reserve study provider’s objectives are threefold:

To provide a broad perspective on reserve studies; to assist property managers with a successful presentation of reserve fund studies; and to create opportunities for more meaningful reserve studies and effective implementation of recommendations. To accomplish that, we suggest the following steps

  1. Pre-project meeting

    The board (or building subcommittee) should meet with the consultant before actual work starts. The objective is to refine and finalize the scope of the project, discuss any specific concerns and review the asset list. This is also an opportunity to determine what will be expected of the association (or management company) and what will be expected of the consultant throughout the project. Suggested language for the RFP is as follows:
    The first step after selection is a meeting with the board (building subcommittee) to review, refine, and finalize the scope of this project. At that time, the items to be covered, the procedures involved, the on-site protocol to be used by the consultant, and any special concerns of the board (building subcommittee) will be discussed.

  2. Conduct an owner survey

    The intent is to give all of the owners the opportunity to express any particular concerns they might have about the project.
    While this may seem risky, it has been our experience that it is actually quite effective. Such a survey would be accompanied by a letter from the association providing all of the owners with the scope and limitations of the reserve study to be conducted and encouraging them to respond to the survey. It has been our experience that there is a very high percentage of response. Often the response to these surveys will reveal patterns that relate to association responsibilities as well as giving owners the opportunity to note areas of concern.
    The content of the survey should be reviewed and modified for each specific project. Also, a letter should be distributed to the unit owners, along with the survey, explaining the purpose and logistics of the reserve study and the survey. That letter should be on the association stationery. The survey would be on the consultant’s stationery. The following is text for the RFP relative to this point:
    The consultant is expected to participate in at least one meeting with the board (building subcommittee) prior to commencement of the project.
    The consultant is expected to distribute a survey for use by all unit owners and compile the results of that survey as a part of the reserve fund study.
    The final report would include a summary of the survey findings as well as any specific recommendations or observations related to the survey.

  3. Follow-up meetings

    It is important that the consultant be willing to discuss the findings of the study with the directors, building subcommittee, and unit owners.
    This is especially important if the study includes an evaluation of upgrades and improvements. Ideally, there will have been ongoing communication with the directors (building subcommittee) throughout the study process. A meeting with the unit owners will be a logical extension of that process. The following is language to be used in an RFP for that purpose:
    The consultant is expected to attend at least one meeting to which all of the unit owners are invited. This will occur after submittal and acceptance of the final report. The consultant will be expected to provide an overview of their findings and to respond to questions from the unit owners.

  4. Report format

    Effective communication means effective distribution of information.
    The consultant’s report should be well organized and well written. Since most state laws require that the reserve fund study be made available for all owners clear graphics, photos and tables are recommended. Further, the report should be compatible with electronic distribution. Be sure to call this out in the RFP:
    The consultant will provide final report in electronic format. This will include photographs highlighting areas of concern and/or special interest.

  5. Review draft report

    For the association, directors, and building subcommittee to be comfortable with the work of the consultant, it is important that there be interaction throughout the process.
    Generally, we recommend that the consultants meet with the directors/building subcommittee regularly throughout the process of developing the study and submit a draft report for review and comment by the directors/building subcommittee. The RFP should include the following language: The consultant will provide a draft report in electronic format for review by the board (building subcommittee). The board (building subcommittee) will provide comments within two weeks of receipt of the draft report. Following that, the consultant will provide its final report.

Now That You Have the Results, Where Do You Go From Here?

In the first half of this article, we discussed reserve studies and selling the results of the report to your association (without a revolt!). Now that you have the association on board with the report, how do you go about implementing the actual findings?

Tom Landry, the legendary head coach for the Dallas Cowboys, said, “Setting a goal is not the main thing; it is how you will go about achieving it and staying within that plan.” This applies to associations as well: implementing a reserve study properly is as important as obtaining a quality study to begin with.

A reserve fund plan will outline where your association currently stands financially, and the next steps to maintain adequate funding. By providing your association with comprehensive inventory of all common elements and an in-depth analysis to dictate your community’s maintenance standards, the final report will greatly assist your association in reaching maintaining financial stability.

Elements of the Study

A reserve study consists of two elements: physical analysis (condition assessment) and financial analysis (fund status and funding plan). The physical analysis, which should always result from a minimum of one site visit and meeting with the board of directors, produces a detailed reserve component (or asset) list for your community. This component list will inventory the association’s common elements and the remaining useful life (RUL) of each one.

The financial analysis documents the current reserve fund balance, current rate of contributions and projects annual balances based on projected expenses. The objective is to be sure the balance remains positive (or a board determined minimum threshold) as monies are spent. We recommend the cash flow method for funding projections, it’s practical and easy to understand. Some consultants will offer component funding.

Funding Plan Considerations

The funding plan serves a measure of your current condition and as a road map for the future. While you may be tempted to look only at the bottom line and determine what your association’s monthly reserve dues will be, individual features such as the inflation factor and replacement cost cannot be ignored. To ensure a sound budget throughout the years, each piece of the reserve fund puzzle must work together.

The funding plan will recommend a monthly reserve contribution, which is the amount each homeowner will pay in monthly dues (or quarterly, depending on your particular association) to the reserve fund only. The assessments are based on the funding plan developed to take your current reserve account to the funding objective. If your association currently has a weak account (or none at all), the reserve dues will naturally be higher than those associations with well-funded reserve accounts. Using the cash flow method, owners will pay dues to the reserve fund, designed to offset the annual expenditures from the reserve fund.

If your community doesn’t have a reserve fund in place, and you have cash needs, you should start the fund immediately and defer expenses where you can. A modest first payment in excess of the normal monthly payment will help get you started.

Along the same lines, securing a loan from a bank that specializes in community associations is another option that is growing in use. This can be a good alternative for associations who are drastically under-funded but don’t want to impose a special assessment on the homeowners. Planning ahead and making regular contributions to the reserve fund will reduce the risk of such a loan.

A special assessment may be necessary for associations that need the money relatively quickly, particularly in the case of an emergency, and don’t want to go through a bank to obtain a loan (and therefore, pay interest). This can be an unpopular choice with the residents of your community. A special assessment can l can be a one-time payment or installments, depending on the need and urgency. A well-managed association with reasonable reserve planning should work to avoid a special assessment.

Ongoing Maintenance & Updates

Based on your starting reserve balance, the final step is to establish a preventive maintenance program. This is different than a reserve funding plan. If your association does not maintain the components as detailed in the report, you run the risk of putting your association much farther behind in both maintenance and reserve funding.

Additionally, updates to the reserve study should be performed every three to five years. Changes to the association inventory, inflation significant weather events, and updating the RUL are just a few of the factors that can change the original reserve projections.

A quality reserve study performed by a Professional Engineer is the ideal way to continue planning for future repairs and improvements

All common assets of your association can successfully be maintained with advance planning. Stable budgets and an aesthetically pleasing property will keep homeowners content and ensure a stable budget, all while attracting new homeowners.

Reserve studies contain an evaluation of property condition, and most importantly, serve as an indispensable tool in projecting costs and managing reserve accounts. Major expenses are inevitable, these can often be headed off with advance preparation. Reserve studies have the unique effect of allowing you to peek into the future to ensure you plan appropriately today.

Article written by H. Alan Mooney, P.E., RS, Criterium Engineers

Published in Condo Media January 2021 edition

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What is a Capital Needs Assessment?

When building owners and property managers plan the financial future of their facilities, the quantitative tool most often chosen is the Capital Needs Assessment (CNA).

A CNA creates a capital forecast of needed reserves to fund depreciating asset replacement and prioritize discovered deficiencies while providing a comprehensive document to justify lending requests. CNAs are often used to mitigate the risk of unanticipated or unrecognized potential failure of key building systems.

Communication is Key

The challenge of a successful CNA is its need to meet the specific requirements of both the building owner and potential lending institutions. Criterium Engineers has met that challenge for its clients for over 60 years with in-depth local and nationwide knowledge of building science and reliable capital budgeting expertise. Communication is the key. The clarity and depth of our written and verbal reporting are responsible for the long-term relationships we have established with our clients over the years.

Tailored to Each Client

Since all facilities are different and client needs vary, a CNA report is unique for each project. While a detailed discussion of the current physical condition of all major building and site improvement assets is common in all reports, the presentation of the financial analysis and recommendations is often driven by the specific needs of the client or lender.

Typical CNA planning schedules include a 20-year timeline. However, requested forecasts can range from 5 to 30 years. Property types including commercial, multi-family, or industrial will often dictate the report’s focus on asset inventory elements with consideration of like-for-like renewal vs. upgrade renewal.

Many commercial, federal, state, and local lending agencies have their own preferred spreadsheet or tabular templates needing to be considered. Criterium Engineers’ breadth of experience will ensure our evaluations are on target the first time.

Scope of the Assessment

Following authorization to proceed, our engineering team will review steps of the study to confirm your goals and coordinate data collection, field visits, and schedule report submission.

Our report’s narrative will consider the standard estimated useful life of various building elements while supplementing these standards with the actual observed conditions. Photographs of significant issues will be included as well as graphics and charts necessary to illustrate important points and summarize the capital expenditure (capex) estimate.

The report narrative will list assumptions including expected inflationary factors and methodology of the financial analysis.

Beyond the CNA

Typically, a CNA’s focus is on financial forecasting. However, the scope of work could be expanded to include consideration of nearly any special facility issue or client requirement.

Issues and tasks not typically considered or performed in a CNA, but which Criterium can address as optional, additional engineering services include: structural and environmental assessments, energy audits, building code or other regulatory compliance, ADA or Fair Housing accessibility compliance, invasive observations, material sampling and testing, construction quality assurance and building commissioning.

Criterium Engineers’ work is performed by, or under the direct supervision of, experienced Professional Engineers (PEs). The in-house staff of the 35 Criterium offices located across North America includes PEs licensed in nearly every state and province.

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Commercial Building Inspections: Three Options

commercial building inspections three options

Criterium Engineers’ commercial building pre-purchase inspections guide our clients through the due diligence process. The inspections and the resulting reports, performed by licensed, Professional Engineers, inform the prospective buyer regarding important aspects of the property and may also assist in negotiating a purchase price, depending on what is found. All of Criterium’s reports conform to widely recognized national standards such as the American Society for Testing and Materials (ASTM), and Standard and Poor’s. Every year, we assist prospective buyers in support of thousands of real estate transactions all across the country.

Our three inspection options are described in order of complexity:

Commercial Building Inspection (CBI) $

  • A thorough, on-site visual inspection encompassing a property’s overall condition, focusing on all key building components and site improvements (structure, weather envelope, heating, ventilation, electrical, plumbing, storm drainage, paving and more), life safety issues and common environmental factors.
  • A written report and captioned photographs detail our findings, highlighting building assets and strengths, as well as any deficiencies, potential problems we observe.
  • The building’s current condition is clearly explained, so our clients can make confident, informed decisions about their purchase.

Enhanced Building Inspection (EBI) $$

  • The same general scope as a CBI (outlined above) and a similar report.
  • Includes review of available property documentation and interviews with available knowledgeable persons.
  • Identifies needed short-term and long-term major repairs and replacements and a projection of associated capital budgets over a 10-year planning period. This helps prospective buyers anticipate cash flow requirements.

Property Condition Assessment (PCA) $$$

  • Our most comprehensive inspection. Often required by lenders.
  • Encompasses all work described above for a CBI and EBI, and provides more information and greater value.
  • May serve as the starting point for more involved investigations to satisfy any special client-requested due diligence requirements, if needed.
  • Includes research into known compliance and safety issues, including inquiries with municipal or county officials, or other controlling jurisdictions.
  • More detailed engineer’s observations and findings for each component and system, and identifies deferred maintenance and significant deficiencies requiring further capital investment.
  • A Property Profile summary table is included to easily reference key information.
  • A Repair/Replacement Cost Table is included with three categories: Immediate for critical corrective actions; Short-Term for recommended year one work; and Long-Term for anticipated major expenditures. The length of the study period and level of detail is determined based on our client’s business needs.
  • The third-party detailed information in a PCA provides a prospective buyer with an objective tool to advise sellers of property deficiencies and may assist in re-negotiation of purchase price.

Download our “Commercial Building Inspections: Three Options” sales sheet

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Leaks Happen

Finding the Leak

Like the bumper sticker says, Leaks Happen. Eventually all roofs will leak. The various available condo roof surfaces typically have different reserve fund plan expected useful lives. High slope roofs such as fiberglass composite shingles are budgeted to be replaced in 25 to 30 years while low slope roofs surfaces such as EPDM (black) or PVC and TPO (white) roof membranes are expected to last 20 to 25 years. Of course, there are variables to consider such as frequency of inspection, repair history, and quality of original workmanship, but for planning purposes the industry standards can be relied on. What is difficult to predict is when the roof will leak or finding the source of the leak when it starts.

Repairing the leak usually starts with the water intrusion becoming noticeable to a unit owner who reports the problem to the property manager or building committee. Sometimes the source of the leak is obvious as is the repair plan. Unfortunately, this is rarely the case. Instead, the search for moisture infiltration can be a challenge with various investigative steps eliminating what is not the source. First, the possibility of an interior leaks must be eliminated. This could include leaky plumbing pipes; HVAC equipment condensation; fire sprinkler system; hot water tank leak; and ice dams.

Depending on whether the building has a high-slope or low-slope roof, the next steps often include viewing the underside of the roof either from an attic space or mechanical room with a flashlight. Luckily, the point of water infiltration can easily be spotted from visible water staining on the roof sheathing or decking underside and water or pooling marks on the floor. Following the interior investigation, viewing the roof surface directly from the ground with binoculars or walking the low-slope roof surface. Looking for damage or missing shingles or other roof components can be successful while inspection of roof membrane surfaces focus will be on broken membrane seams, holes, or flashing damage. If this visible inspection comes up empty, a more proactive effort may be required including spraying the roof surface area with water to repeat the leak occurrence or even flooding the low-slope roof area. Beyond this preliminary effort, my recommendation is to seek professional help.

This help should start with pulling out the original roof warranty (assuming you can find it) and read it to see if it would apply and then act accordingly. Your next step could be to call your local roofing contractor. Many of these roofing companies are very good but their business model is based on installing new roofing surfaces not your less rewarding repair service needs. This approach also faces the concern of conflict of interest following the roofing contractor’s inspection report recommending your condominium needs the entire roof surface to be replaced, not repaired. At this point, you may want to consider calling the engineering firm who recently performed your condo’s reserve fund study for guidance. The phone call will be free of initial costs, and should you engage their technical services their opinion will be free of conflicting bias while potentially making available to you technical and forensic tools you did not know existed.

Source of Moisture

As was suggested, fixing the leak is the easy part. Finding the leak is the challenge. As an example, a property manager for a low-rise condo community with flat roofs called me to tell of a water leak in a unit owner’s top floor kitchen ceiling where water was dripping from the ceiling light fixture. Above the ceiling was a dead plenum space containing the structural roof framing joists and utility cable conduits. The maintenance staff cut an access hole in the kitchen ceiling to view the underside of the roof steel decking and inspected the EPDM roof membrane surface above but with no success in finding the source of the leak. When I arrived what I found would have made Rube Goldberg proud of this leak.

Using an infrared thermal scanner, I followed the trail of the leak in reverse. The water source was a pool of water forming in a low area of the drywall ceiling’s vapor barrier where a pin hole in the plastic allowed water to find its way to the ceiling light fixture’s penetration hole. This pool of water was caused by the dripping of water from the above suspended metal cable tray channel which had a small hole caused by a missing fastener screw. This cable tray channel went 15 feet to the left till it was located under a structural steel frame for the HVAC unit located on the roof. Water dripping from the lower flange of this structural I-beam was coming from water falling from the upper flange of the I-beam four feet up-slope that was being wetted by water falling from an equipment mounting bracket bolt whose vibrations caused the EPDM membrane covering it to be cut allowing rainwater to enter the building. The use of infrared thermography allowed me to follow the differential surface temperature along the leak path right to the source.

Flashlights and moisture meters are still very useful but new effective forensic tools have become available for investigating moisture damage to structures including both thermal and infrared imaging; hygrometric scanning; capacidence testing; water vector mapping; electrical potential difference (ELD) testing; and nuclear scans. The use of low flying drones equipped with infrared scanning cameras for inspecting expansive flat roof surfaces is now readily available. There is no greater danger to buildings and their occupants than unauthorized water.

Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers
Published in Condo Media

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Seeing Clearly with Window Replacement

Challenges Associated with Window Replacement

Window replacement can be one of a condominium board’s greatest challenges. This is due to elements of mystery, timing, and high cost. For a variety of reasons a unit owner may want to replace one or more of her unit’s windows. After following the condo’s guidelines for obtaining approval from the board or the building committee, approval is typically very straight forward. The problem arises when the project involves replacing many or all of the community’s windows.

Window Ownership

Windows typically belong to the unit owner and are not a common element under most condominium rules. Often complicating this issue is the ownership of windows is not always clear in the original condo documents. Sometime the board finds the matter of ownership was determined by a past board decision based on an incorrect interpretation of the condo’s documents. Therefore, when in doubt, the board should check with the condo’s attorney for the final determination.

Assuming it is confirmed the windows belong to the unit owner, the building committee is not off the hook with window leaks or other window failures, as these same condo rules assigning the windows to the unit owners also assign the window frames to the association’s responsibility. In many cases it is not the window that is leaking but the frame’s flashing (or lack of flashing), structural framing, or other common element causing the problem.

Window Replacement

Poorly installed windows not following the manufacture’s instructions are one of the biggest sources of unit owner complaints. Often the only solution is to remove the siding around the window, inspect the flashing, and re-flash. Many such problems can be minimized by preventive inspections using either visual methods or instruments such as moisture meters to focus on the specific moisture path to diagnose the issue.

Most window replacement projects are due to age. Quality windows will last more than 30 years. Environmental factors such as high wind areas or proximity to bodies of water can have an adverse effect on the useful lives of some types of windows. Window seal failure on a limited percentage of windows can also prompt their early replacement. And, interestingly, the driving factor in most condo window replacement projects is not the age of the windows, but the age of the siding.

Window Costs

It is not unusual for a condo unit owner to be faced with having to pay for window replacement because the community has made the decision to replace the siding. The lifecycle of the condo’s façade may not be in sync with the age of the current windows. Replacing or changing a community’s façade is a difficult decision in itself. As the fenestration elements of the façade include security issues, sightlines, and air flow matters, the board may decide the windows also must change. Recent national findings have shown the importance of improving air quality in older buildings by introducing natural ventilation. This may require communities to consider changing the type of windows replaced in the future.

Window Choice

Choosing the best replacement window can be a daunting task and often a board will need the advice of a professional such as an architect, engineer, or window supplier. Choices of style, functionality, and installation types can be wide-ranging with some windows eligible for a $500 federal tax credit. The first decision is often whether the replacement will be ‘full-frame’ window requiring exposure of the rough opening or an ‘inset’ replacement. This decision will be dictated by both cost and the impact of the window project on the siding or other framing considerations.

Today’s typical high-rise windows frames are metal while low-rise residential window frames will have a vinyl exterior surface. From there, the decision makers will turn to selecting the type of glazing (window glass) where both initial and life cycle costs of materials and energy conservation will be considered. The initial consideration is double- (two-panes) or triple-glazed (three panes). Maine’s northern climate would suggest triple-glazed is the best choice to reduce both energy loss and noise transmission.

It is at this point the need for window expertise comes into play. Window performance can be greatly improved by changing the chemical composition or physical characteristics including the use of tinted glazing or reflective coatings and films to reduce heat gain and glare. Some low-emittance coatings have been developed to improve both heating and cooling season performance. Other manufacturers use low-conductance gas fills between the glazing layers with thermally improved edge spacers to meet performance goals.

The board’s window consultant will be able to guide the board through this decision process to select the optimal window performance within the community’s budget restraints. Windows are a long-term investment, increasing the market value of the units while reducing the life-cycle costs of heating and cooling. Making the correct window replacement decision now will allow the project to see a clear success in the future.

Article written by Jack Carr, P.E., R.S., LEED-APCriterium Engineers
Published in Condo Media April 2021 edition
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About the Roof

About the RoofInspection Techniques for Surface Survival

The roof surface of your condo building is probably the most important common element under association control. Water intrusion into the interior will cause more damage or unit owner outrage than almost any other problem brought to the board’s or property manager’s attention. It bears careful consideration.

There are many types of roofing materials here in New England – roll/built-up roofing, wood shingles, metal, fiberglass shingles, etc. – but for ease of discussion, let us focus on the most common: high-slope asphalt composite shingle and low-slope membrane roof surfaces. Inspection techniques tend to be similar for all types of roofs.

Most roofs tend to last 20 to 30 years, but many factors can cause those estimates to vary. Warranties on roofs should not be confused with how long a roof will survive, as warranty is another word for pro-rated insurance coverage. Roof surface survival is more dependent on the quality and thickness of the material, skill of the installation, ventilation on the underside of the roof, and periodic maintenance than all the warranties in the world.

High-Slope Asphalt Composite Shingle

A periodic inspection by roofing professionals is always a good idea, but most roofs can be easily inspected with a little instruction and a systemic approach. The first thing to remember is climbing a ladder onto a sloping roof is the last thing you should consider. The condition of many roofs can be determined with binoculars and viewing the roof at the proper angle and time of day.

That said, the condition of a roof can often be best determined from inside, such as in the attic. The inspection should include observing the condition of the roof’s underside whether it be metal or wood product sheathing. Old and new leak stains should be noted, as well as their locations relative to roof penetrations and other reference points that will warrant further investigation during outside viewing. Attic inspections should also note the quality or lack of ventilation. All vents, including ridge, gable, and soffit vents should be clear of obstructions and mechanical vents should be operational. There should be a breeze in the attic on a windy day.

Roofs rarely leak in the open field of the roof unless shingles are blown off. Therefore, the roof inspection should focus on transition points of dissimilar materials or junctures of roofs and walls, such as dormers and chimneys. All skylights, vent pipes, and other roof penetrations should be monitored.

When on the ground, viewing the roof at an angle will help note irregularities or the first sign of aging and failure. Problems to observe on the inspection log are edge curling or other shingle movement; wavy shingle lines; cracked or missing shingle tabs; and loss of granular particles found in gutters from the shingle surface. Walking on shingle roofs showing signs of shingle movement can cause severe damage and lead to accelerated roof failure. Debris in roof valleys or valley flashing condition should always be noted. Shingles with a southern exposure will fail first. Observing the roof surface eave edge for damage from ice dam removal, rusting drip edges, and lack of a three-eighths-inch drip edge are all signs of early problems. Chimneys without crickets to divert water and ice are more susceptible to water infiltration and flashing failure.

Low-Slope Membrane Roof

Flat EPDM (black) or vinyl (white) roof membrane surfaced roofs are easier to inspect. They are also excellent candidates for thermal (infrared) scanning surveys. Issues to note are the condition of the surface coatings, punctures, cracking, alligatoring, blisters, fish mouths at seams, blocked drains, and ponding. Problematic conditions are ponding or the dried-up outline of prior ponding, which indicates poor drainage and can be a source of water infiltration. Roof membranes are designed to allow ponding for only a few days. If ponding is persistent over extended periods, the membrane will deteriorate, and seams will fail prematurely.

The heavy snow loads in New England are hard on low-slope roofs. Roofs are often cleared of snow to reduce dead load. The extra traffic on unprotected membranes can cause severe wear, especially in areas where the insulation boards beneath the membrane have their mechanical fastener heads touch the membrane’s underside causing tears.

No matter how many or what type of roof surface you may be responsible for, having a systematic way to keep track of the roof’s condition is invaluable. A maintenance log of leaks, repairs, and observations produces a very organized approach to facility maintenance. A checklist with the issues listed in this article with photos illustrating roof problems can go a long way to keep maintenance cost down and rain out.

Article written by Jack Carr, P.E., R.S., LEED-APCriterium Engineers
Published in Condo Media March 2021 edition
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The Invisible Wall: Site Walls Should Not be Out of Mind

Retaining wall inspection

There is no condominium community asset more overlooked than its site walls. They literally become part of the landscape and seem to disappear, yet they are vital to the health of the community. They are sometimes called retaining walls or sometimes simply landscape structures, but in the hilly interiors of Maine or the rugged slopes of the coastline, these structures allow the very existence of some condo communities.

They can be made of many different materials. They can be poured concrete, steel, or timber. They can be concrete block or stone or brick. They can be very tall or very short. Whatever they are, if they fail, they can be dangerous and costly to repair. So, a prudent grounds committee should schedule regular inspections and maintain a log of repairs.

Retaining Wall Inspection
Schedule and Checklist

It is recommended retaining walls be inspected four times a year, that is, before or after each season. Heavy rains or soil frost movement can have a significant effect on a retaining wall in a short time. At the very least, someone should perform an annual inspection and compare those findings with the year before.

Grounds Conditions

Like us, aging retaining walls deteriorate primarily because of gravity. This can be due to the excessive soil loading behind the wall or the weight of the wall overloading the soil conditions beneath the wall. The increase of forces behind the wall is often the result of water build up due to surface water above the slope percolating into the ground or a raising ground water table. Weep holes are designed to reduce this increase in hydrostatic pressure, but weep holes can be blocked by debris or overwhelmed by the quantity of water.

One of the first steps in the inspection process is to observe the conditions of the ground surfaces upslope of the retaining wall. Some walls have trench or other types of drains to intercept the water while some ground surfaces are designed to quickly drain water over or around the wall before it can enter the ground behind the wall. If water ponding above the wall is discovered, this problem must be corrected. Ponding will occur if the ground settles or is removed due to erosion. If the top surface is paved, cracking in the asphalt or concrete surface can allow unintended water to enter the soil.

Retaining Wall Surfaces

The surface of the retaining wall is the next and perhaps easiest element to inspect. Wall movement should be noted. Walls should lean back toward the slope uphill. If they lean forward or have signs of bulging in any locations this could indicate excess back pressure or failure in the underlying soils. Horizontal cracks are usually more serious than vertical cracks. The first time this is noted it should be brought to the attention of the facility manager or your engineer.

Timber retaining walls can move or crack due to both earth movement and insect attack. Timber wall elements can rot with age.  Any type of wall can crack and allow vegetation matter to grow from either side of the wall. All roots, weeds, or other growth should be removed when discovered, as they can apply considerable pressure to the crack and create localized weakening of the wall. Wall cracks in concrete surfaces can allow moisture to reach the reinforcing steel causing excess corrosion creating not only internal pressures from expanding rust, but also provide a passage for water infiltration creating further deterioration from expanding freeze/thaw cycles.

Missing wall stones or bricks can also be an indicator of severe developing problems.  These missing elements may weaken the structural integrity of the retaining wall and indicate excessive soil pressures forecasting future wall bulging, bowing, or bellying either vertically or horizontally.

Changes in Proximity

As the original retaining wall was designed for specific loading conditions, any changes in the general proximity of the wall should be considered. This could include the placement of a structure or other heavy mass on the ground surface at the top of the wall or changes in use of the land by your upslope neighbor. This could include a roadway, parking lot, or the use of road salts or deicers near the wall. It also includes any changes to the pattern of surface water drainage such as switching from a grassy surface to a mulched surface.

Slope Movement

One of the subtlest wall failures is the actual movement of the slope itself. In some circumstances it is possible for the entire hillside to shift or move in mass without damaging the wall itself. For this reason, it is important to document not only the wall but the peripheral areas in the vicinity to ensure any movement out of the ordinary is noted and reported. Especially note any ground movement at the foot of the retaining wall. A visible wall is a safe wall.

Article written by Jack Carr, P.E., R.S., LEED-AP, Criterium Engineers
Published in Condo Media June 2021 edition
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